Time and a half is common in service-oriented industries, especially those with shift work. Many retail workers and those working in warehouses and distribution roles frequently earn overtime during busy seasons and holidays. Healthcare workers, especially nurses, can earn significant annual overtime pay. Some employees are exempt from time and a half pay requirements.
Pocket Calculator
While I do research each calculator’s subject prior to creating and upgrading them, because I don’t work in those fields on a regular basis, I eventually forget what I learned during my research. So if you have a question about the calculator’s subject, please seek out the help of someone who is an expert in the subject. Select the applicable overtime multiplier from the drop down menu. If your multiplier option is not available in the drop down list, select Other and enter the multiplier.
Chart with Common Hourly Rates
They generally must pay the overtime earned in a particular workweek on the regular payday for the pay period in which wages were earned. To calculate an employee’s overtime rate of pay, multiply their regular rate by 1.5. Payroll software automatically calculates overtime based on hours worked. Time and a half is overtime compensation where certain employees receive 1.5 times their normal hourly wage for each hour worked beyond 40 hours in a workweek. If your work involves manual labor (such as construction worker, factory attendant, cashier, etc) you are probably protected under overtime law.
My Personal Experience with Overtime Pay
There’s a bill being proposed called the No Tax on Overtime Act of 2025. This bill would remove taxes on overtime compensation, meaning putting in the extra hours at work could be even more valuable to you if it’s passed. The exact rules vary significantly by state laws, industry and union contracts, company policies, and whether you’re exempt or non-exempt from overtime laws. Since there’s no law that says employees must be paid 17 time and a half time and a half on holidays, it all comes down to your company’s own policy or the employee’s contract. Since they’re not guaranteed or expected, you don’t need to factor them into the overtime pay rate.
Example 2: Holiday pay
The FLSA defines a workweek as any fixed 168-hour period that you designate. For example, an employee working 55 hours in Accounting for Marketing Agencies one week and 25 hours in the next week is entitled to overtime pay for the first week (in this case, 15 hours). The FLSA applies regardless of whether the overtime was pre-approved or voluntary. The time and a half calculator is flexible to include all types of custom overtime rates and hours.
- According to the FLSA, employers can designate any fixed 168-hour period as a workweek—so long as it’s regular and recurring—and this period can vary between employees.
- The information on our website cannot be considered a substitute for legal and binding advice for any specific situation.
- Overtime can get a bit trickier when bonuses and bank holidays enter the mix.
- So if you want to know how much OT or holiday pay you will receive, enter the number of hours and the calculator will instantly calculate it for you.
- Executives, administrators, and other professionals earning at least $455 per week do not have to be paid overtime under Section 13(a)(1) of the Fair Labor Standards Act.
For estimating the overtime rate of employees, companies usually offer time and half rate of the standard working hours. Enter the required values into the calculator and click on “Calculate” to find the employee’s overtime pay rate. Only nonexempt employees are eligible to receive time and a half pay. Multiply the employee’s overtime hours by the overtime rate of $44.12.
Calculator references
Exempt employees are exempt from the FLSA and its overtime pay requirements. If you have nonexempt employees, you have to pay them overtime, or time and a half, for any hours worked over 40 during the workweek. Learn all about time and a half, who qualifies for overtime, and how to calculate time and a half when running payroll. According to WNYC Studios’ brief history of overtime, this legislation was revolutionary in protecting workers’ rights and ensuring fair compensation for extended work hours. The FLSA does not require premium pay for working on a holiday.
How to calculate time and a half for hourly employees
Wouldn’t life be easier if employers offered double pay for overtime and holidays? Instead, you’re more likely to find yourself navigating the confusing world of time and a half – that is to say, pay that’s 50% higher than your standard rate. This is the minimum overtime rate required normal balance by federal law for hours worked beyond 40 in a week. You’ll discover how time and a half works, who qualifies, and how to calculate overtime for hourly and salaried employees.